Several prospects I have spoken to find them selves in a quandary. They want to find the right home for themselves and get in contract before they sell their current home and move.
In this unstable market I am unaware of anyone willing to accept an offer of purchase with a contingency of the sale of a home in the offer. Some new home sellers might work with this if the completion date for the new home is down the line a ways.
If you have the resources you can buy the new home and then sell your current home. Most people do not have the financial resources to do this, and if they can afford it have two house payments at one time is very costly.
However, there is a 3rd option. That is to sell your home with a contingency of the sale being complete only when you find and close on your new home. In this market you might find buyers will to wait for you to find the home you want after they are in contract with you. There are some risk and many issues should be decided when you are finalizing the contract:
- You should clarify in the contract the type of home you will be seeking. Be as specific as possible in regard to style, size, location etc. Remember if you have too many specifications it may scare the buyer.
- Clarify in the contract how long you have to find and close on your house.
- The contract should address what happens if you cannot locate the home you want or if either party wants out of the agreement. The deposit should tie the buyer to you for a bit, but at the same time buyers will be reluctant to be tied down too long.
- Remember if the market changes too much one or both parties may see advantage in getting out of the contract. Damages will generally be limited to the amount of the deposit.
- The lending market is also very volatile at the moment and it may be hard for a buyer to hang on to their pre-qualification status and they may have to start over on the loan if the situation drags out too long.
For all the pitfalls I believe this is a viable option for someone wanting to buy and sell at the same time. If you want more information on how to do this or selling your home please contact me directly. We can provide you with market information where you need to sell and where you want to buy.
Subscribe to Gene Riemenschneider's East Contra Costa Home Blog by Email
Why Home Point Real Estate?
Home Point Real Estate is your partner in Buying a Home (Free MLS Access to Search for Homes) or Selling a Home (Get a Free on Line Home Evaluation). We are a Leading Internet Real Estate Company with the tools to meet the modern online Real Estate world combined with Traditional and Personal Customer Service.
Where is Home Point Real Estate?
Home Point Real Estate is Located in the East Contra Costa County community of Brentwood we also provide service to Discovery Bay, Antioch, Oakley, and Pittsburg. Click on the Community to see Homes For Sale Now.
Does Home Point Real Estate Handle Bank Owned Homes?
Yes! Go Here to: Get the Free Bank Owned Homes Buying Guide and Get a Free List of Bank Owned Homes.
What if I am in Foreclosure, having Mortgage Trouble, or Want to Short Sale my Home?
Home Point Real Estate is the company for you! Contact Home Point Real Estate and request a Free Consultation with a certifies SFR (Short Sale and Foreclosure Resource) to see if there is a way to save your Home or to do a Short Sale and help Save Your Credit. Get the Free Short Sale information Report for Buyers and Sellers too. Click Now for Short Sale Information and Free SFR Consultation.
Can Home Point Real Estate Help me with Real Estate Investments?
Get The Free Book of Real Estate Investing from Home Point Real Estate along with the Free Investor Calculator. This Book covers complex investing concepts in any easy to read manner with plenty of examples. Including Tax Issues, How to Evaluate an Investment Property, and more.
Make Home Point Real Estate your Partner in Real Estate Success – Call Now 925-260-4321
